Property tax is an amount that a property/ landowner pays annually to the local or state government. It is levied on assets that classify as ‘real property’ and usually include land and buildings. The state’s respective municipal authorities collect this tax from citizens, and it is among the primary sources of revenue for these entities. The funds collected are used to fund the upkeep and improvement of civic amenities, education, transportation, recreation, local infrastructure, etc.
Property tax computation formula
Property tax is based on its valuation and appraisal as per the locality the individual resides in. The amount collected as property tax by a municipality, a municipal corporation, or a Panchayat within a state or city can vary depending on the locality’s type of levy, amenities available, and other similar factors. With this information, you can even calculate the applicable tax by yourself.
The general formula for municipal tax calculation is:
Tax on property = Property’s base value x building type x age factor x built-up area x floor factor x use category
This is a manual method, but you can also compute your property tax online. In any case, property owners can pay their taxes online or offline. Regardless of how you pay your tax, ensure that you collect the tax receipts after payment. These documents are required when you apply for certain financial instruments or when you want to claim benefits such as the loan against property tax exemption.
Steps to pay property tax online
Follow these simple steps to file your property taxes online:
- Visit the official website of your municipal corporation
- Navigate to the page where you will be able to file your property tax
- Enter your property details, as well as other necessary information on that page as you fill-up the form
- Input any other information required to process, examples of which are listed below
- Ownership details
- Building type
- Occupancy details
- Floor and total area
- Exemption category
- Verify and confirm the information
- Proceed to pay your municipal tax and download the acknowledgement of receipt
Property Tax in Other Cities
|Property Tax in Indore